'Board Meeting date' relevant for pricing of securities
Published: Mar 24, 2017
By TIOLCORP News Service
MUMBAI, MAR 24, 2017: RELEVANT date has great relevance in determination of price of shares of unlisted entities. SEBI has issued a Circular clarifying the relevant date for the purpose of computing pricing w.r.t Schemes of Arrangement by Listed Entities. As Para 8 of the recent circular issued by SEBI for relaxing the norms, provides that the pricing provisions of Chapter VII of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009 shall be followed in case of issuance of shares to a select group of shareholders or shareholders of unlisted companies pursuant to such schemes.
It is now clarified that the ‘relevant date' for the purpose of computing pricing shall be the date of Board meeting in which the scheme is approved.